Investing.com - The U.S. dollar sunk lower against major currencies on Thursday, as uncertainty surrounding the progress of US. tax reform and public spending continues to mount while weaker-than-expected jobless claims data weighed on the greenback.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, sunk 0.3% to 101.01, and is on course for its second day of losses.
The dollar made a rocky start to the session plagued by Wednesday’s Fed minutes, which revealed a reluctance among some Fed members’ to support a raise interest rates, as they await further details on President Trump’s economic plans in order to assess how Trump’s policies would impact economic growth.
The latest U.S. labour market data, added to the greenback’s woes, after the U.S. Department of Labor said initial jobless claims increased by 6,000 to 244,000 in the week ending February 18 from the previous week’s revised total of 238,000 compared to analysts’ estimates of a rise by 2,000 to 241,000 last week.
Meanwhile, New U.S. Treasury Secretary Steven Mnuchin comments failed to inspire a recovery in the greenback, after he told CNBC that he wanted to see tax reform passed before Congress' August recess.
Elsewhere, sterling hit a 1 week-high against the dollar, buoyed by a modest recovery in UK retail sales in February relative to a steeper fall in retail sales in January, according to the latest Confederation of British Industry’s quarterly Distributive Trades Survey.
GBP/USD climbed more than 0.7% to $1.255 at 12:45 EDT 5:45 GMT.
EUR/USD added to the previous session gains to trade at $1.058 up 0.2%, despite a poll showing far-right candidate Le Pen was marginally (10 points) behind conservative Francois Fillon but 22 points behind centrist Emmanuel Macron in the potential second-round run-offs.
USD/JPY traded lower at $112.75, down 0.49% while USD/CAD slipped 0.43% to $1.312.